Essays on some unsettled Questions of Political Economy — John Stuart Mill — John Shaqi
Essays on some unsettled Questions of Political Economy
John Stuart Mill · en
All this is obvious, and is sufficiently allowed by political economists;
who have invariably set apart the gains of all persons coming under the
class of domestic servants, as real advantages arising to a place from
the residence there of an increased number of unproductive consumers.
We have only to examine whether the purchases of commodities by these
unproductive consumers, confer the same kind of benefit upon the
village, town, or nation, which is bestowed upon a particular tradesman
by dealing at his shop.
Now it is obvious that the sojourners, on their arrival, confer the
benefit in question upon some dealers, who did not enjoy it before. They
purchase their food, and many other articles, from the dealers in the
place. They, therefore, call the capital of some dealers, which was
locked up in unsold goods, into more active employment. They encourage
them to save, and enable them to receive wages of superintendance upon a
larger amount of capital. These effects being undeniable, the question
is, whether the presence of the sojourners deprives any others of the
Paris dealers of a similar advantage.
It will be seen that it does; and nothing will then remain but a
comparison of the amounts.
It is obvious to all who reflect (and was shown in the paper which
precedes this) that the remittances to persons who expend their incomes
in foreign countries are, after a slight passage of the precious metals,
defrayed in commodities: and that the result commonly is, an increase of
exports and a diminution of imports, until the latter fall short of the
former by the amount of the remittances.
The arrival, therefore, of the strangers (say from England), while it
creates at Paris a market for commodities equivalent in value to their
funds, displaces in the market other commodities to an equal value. To
the extent of the increase of exports from England into France in the
way of remittance, it introduces additional commodities which, by their
cheapness, displace others formerly produced in that country. To the
extent of the diminution of imports into England from France,
commodities which existed or which were habitually produced in that
country are deprived of a market, or can only find one at a price not
sufficient to defray the cost.
It must, therefore, be a matter of mere accident, if by arriving in a
place, the new unproductive consumer causes any net advantage to its
industry, of the kind which we are now examining. Not to mention that
this, like any other change in the channels of trade, may render useless
a portion of fixed capital, and so far injure the national wealth.
A distinction, however, must here be made.
The place to which the new unproductive consumers have come, may be a
town or village, as well as a country. If a town or village, it may
either be or not be a place having an export trade.